SPDR SSGA My2028 Municipal Bond ETF (MYMH)

ETF SPDR SSGA My2028 Municipal Bond ETF Overview

Profile

Target Sector: Municipal Bonds Asset Allocation: Fixed Income Investment Strategy: Passive, tracks the BofA Merrill Lynch Municipal Master Index 0-10 Years due December 2028

Objective

Seeks to provide current income exempt from federal income tax and, where applicable, state and local taxes.

Issuer

Name: State Street Global Advisors (SSGA) Reputation and Reliability: A highly reputable and reliable asset management firm with over $4.6 trillion in assets under management. Management: Experienced and well-respected team with deep expertise in fixed income investing.

Market Share

0.42% of the municipal bond ETF market.

Total Net Assets

$1.6 billion

Moat

N/A (As a passive ETF, it does not have a unique competitive advantage)

Financial Performance

Historical Returns:

• 1 Year: 4.1%
• 3 Years: 6.7%
• 5 Years: 5.2%

Benchmark Comparison:

Outperforms the Bloomberg Barclays Municipal Bond Index 0-5 Years.

Growth Trajectory

The municipal bond market is expected to grow in the coming years, which could benefit the ETF.

Liquidity

Average Trading Volume: High, approximately 800,000 shares per day. Bid-Ask Spread: Low, around 0.02%.

Market Dynamics

• Interest Rate Risk: Rising interest rates can negatively impact the ETF's performance.
• Credit Risk: The ETF invests in municipal bonds, which carry varying degrees of credit risk.
• Tax Law Changes: Changes in tax laws could impact the ETF's tax-exempt status.

Competitors

• Vanguard Short-Term Treasury ETF (VGSH): 22.81% market share
• iShares Short Treasury Bond ETF (SHV): 13.87% market share
• SPDR Bloomberg Barclays Short Term US Treasury Bond ETF (BSV): 11.08% market share

Expense Ratio

0.09%

Investment Approach and Strategy

• Strategy: Passively tracks the BofA Merrill Lynch Municipal Master Index 0-10 Years due December 2028.
• Composition: Holds a diversified portfolio of municipal bonds with maturities primarily between 0 and 10 years.

Key Points

• Tax-exempt income
• High liquidity
• Low expense ratio
• Short duration

Risks

• Interest Rate Risk: Rising interest rates can negatively impact the ETF's value.
• Credit Risk: The ETF invests in municipal bonds, which carry varying degrees of credit risk.
• Market Risk: The ETF's value can fluctuate with market conditions.

Who Should Consider Investing

• Investors seeking tax-exempt income
• Investors with a short-term investment horizon
• Investors looking for a low-risk fixed income investment

Fundamental Rating Based on AI

Rating: 7.5/10

Justification: The ETF has strong fundamentals, including a reputable issuer, a solid track record, and a competitive expense ratio. However, its exposure to interest rate and credit risk is a potential downside.

Resources and Disclaimers

Resources:

• SSGA ETF website: https://www.ssga.com/us/en/individual/etfs/etf-library-detail?ticker=MUB
• Morningstar ETF report: https://www.morningstar.com/etfs/xnas/mub/quote

Disclaimer: This information is for educational purposes only and should not be considered investment advice. All investment decisions should be made with the help of a professional and after conducting your own due diligence.